Micro, Small and Medium Enterprises (MSMEs) have always played an important role in the Indian economy. Currently, about 6.3 crore MSMEs operating in the country not only contribute a major amount to the country’s GDP but also provide employment opportunities to a large population. It is noteworthy that this sector also plays an important role in the stability of the labor market, providing approximately 110 million jobs.
In such a situation, with the current special emphasis by the government on the Self-reliant India campaign, the role of MSMEs has become more important from the point of view of India’s economy and economic strategy.
While promoting SME bonds will enable MSMEs to benefit from lower interest rates compared to other financial intermediaries, these bonds will also act as a viable high return instrument for informed and educated investors operating in the market. Given the growing importance of the data economy, it has become very important that an independent body is established by the government to advise MSMEs and enable them to move forward in this new digital ecosystem.
Changes in labor laws are a must, but given their sensitivity, these laws will have to strike the right balance between providing a growth-oriented framework for MSMEs and providing adequate protection in terms of workers’ rights.
MSMEs form the backbone of a resilient national economy. It is very important to give priority to the development of MSMEs for the strong economic future of the country. Many important steps have been taken by the government in this direction in the last few years.